French billionaire Patrick Drahi buys £ 2bn stake in BT

French billionaire acquires £ 2bn BT stake in Patrick Drahi: “King of cost savings” is now the largest shareholder of telecommunications giant

Cost Reduction: Patrick Drahi (Central) celebrates the rise of his company, Artis, in New York. He is currently buying a 12.1% stake in BT.

The billionaire owner of Sotheby’s auction house has become the largest investor in telecommunications giants with a £ 2.2bn stake in BT.

Shares soared after Patrick Drahi announced a 12.1% stake, supporting BT’s £ 15 billion plan to deploy high-speed fiber broadband in the UK.

However, investing through his company Altice has raised concerns that the “king of cost savings” could drive BT’s top brass to cost savings.

Insider said he was keen to work closely with BT’s management team, including CEO Philip Jansen, to move the company forward.

Mr. Dry said: “BT has great opportunities to upgrade and expand full-fiber broadband networks to bring significant benefits to millions of households across the UK. We fully support management’s strategy.”

In the news, the stock price rose 6.6% (12p) to 195.15p. BT said it welcomes “all investors who recognize the long-term value of our business.”

The former monopoly was privatized in the 1980s, but stock prices have fallen over the past five years.

BT Sport isn’t performing as well as its rival Sky, and the company is in talks to sell the arm.

There have also been repeated criticisms of services for broadband and telephone customers.

However, investors have found an opportunity in BT’s Openreach. It charges companies such as Sky, Shell, and Talk Talk to piggyback on networks to provide consumer broadband.

BT shares hit a low for the first time in 11 years last year, but rebounded after regulator Ofcom lifted them out of price controls.

Its mission to deploy broadband has been undermined by Rishi Sunak’s two-year “super-deductible” tax cut on investment projects.

BT's mission to roll out broadband across the UK has also been undermined by Rishi Sunak's two-year super-deductor tax cut on investment projects.

BT’s mission to roll out broadband across the UK has also been undermined by Rishi Sunak’s two-year “super-deductible” tax cuts on investment projects.

BT says it is looking for investors to improve broadband in the UK and will consider funding partners.

He is also looking for a new chairman after Jan du Plessis resigned following the fallout in the conference room.

Dry, who holds the citizenship of France, Israel and Portugal, is well known in the telecommunications industry.

He has launched European and American companies since the early 2000s when he founded Altice. Over the last two decades, he has grown it into a giant and gained a reputation as a harsh cost cutter.

The union of the French company SFR even claimed that its members faced a shortage of toilet paper and printer paper after the acquisition by Altice. In March, SFR announced that it could cut up to 1,700 jobs this year. This represents 11% of the staff.

Altice argues that reducing costs means increasing profits and increasing the amount of free money to invest.

In 2019, Dry purchased a 94% stake in Sotheby’s for £ 2.6 billion. The art dealer was criticized for borrowing to pay a dividend of £ 211 million to the owner after receiving a similar debt distribution of £ 116 million in November.

He has been praised for his insight, but retreated in 2017 when Artis’s share price collapsed due to concerns that he could not pay huge debt.

Artis, who insiders say “runs like a family business,” expelled its CEO and returned Dry to the president.


French billionaire Patrick Drahi buys £ 2bn stake in BT

Source link French billionaire Patrick Drahi buys £ 2bn stake in BT

Back to top button